Trusts

Simply put, a Trust is a relationship whereby assets are held by one party for the benefit of another…the beneficiary. There are numerous types of Trusts, all of which are taxed differently and suit differing needs and requirements – they are anything but simple, with laws and regulations frequently changing. However, their benefits can be plentiful if set up and managed correctly.

Overview of benefits

Trusts can be an excellent tax planning tool to help mitigate tax, especially with regards to savings around Inheritance Tax and Capital Gains exposure…as once you place your money or property into a Trust, they no longer belong to you. In most instances they are then exempt from calculations around your tax liabilities. They can also help protect assets, property and help make provisions for your family both now and in the future.

Examples of when you might benefit from setting up a Trust:

You might be in receipt of a large sum of money from an Inheritance or successful Personal Injury claim

You are in a second marriage and have children from your previous relationship – you may want to make provisions for your children as well as your current spouse

It’s a tax efficient way to lock some of your savings away for your children/grandchildren for the future. You can state when they would gain access to it i.e once they reach the age of 18 or 21 and you feel they are more responsible and would make better choices!

You may want to set up a Trust to pass assets on to a vulnerable person who isn’t capable of managing it themselves – a trustee would be chosen to manage the Trust on behalf of the vulnerable person.

Trust our Trust experts

For a Trust to work effectively it requires expert legal, tax and investment advice, as well as staying on top of the administration and paperwork side of things – we can manage all of this on your behalf.

Our solicitors understand the complexities of Trusts and how crucial choosing the right type for your particular circumstances and goals can be.